Texas Ratio peer data as of December 31, 2009

We calculate an extensive amount of bank peer data each quarter. Over the past year or so I’ve been asked on several occasions if our database includes the Texas Ratio. While we don’t regularly compute it, I did query & calculate our data to generate some Texas Ratio peer stats. Here are a few quick facts using bank data as of 12/31/2009 (see note #1):

337 banks have a Texas Ratio of greater than 100%

the typical Texas Ratio ranges between 3.5% and 36.1%

the average is 27.7%

Nearly one-third of the banks above the 100% mark are in Georgia or Florida

To give you some perspective on the 337 number, four years ago as of 12/31/2005 there were only two(2) banks with a Texas Ratio above 100%. Quite a change.

Computing the Texas Ratio is pretty simple using the data from the call report:

Note #1: We used the preliminary FFIEC call report data available in mid February of 2010. As a result our sample size was only 7036 banks, some call report data was not yet public available at that time. Also, some banks may have re-filed their call report since then.